Our team works extensively with physicians, dentists, specialists and residents at each stage of their medical journey. We work with their existing accountants and legal professionals to deliver an unmatched full-service approach to their situation. We understand the extreme career demands of medical professionals and we help you achieve a streamlined and simplified approach. Our first step is to ensure your practice is designed in the most tax efficient manner. Utilizing your Medical Professional Corporation (MPC) or Dental Professional Corporation (DPC) is paramount to your future retirement goals, while complimenting with your personal assets. We then formulate a written and actionable financial plan that we use to hold us accountable to ensure you are on track to reaching your goals. These various ‘pools’ of capital are your pension which will be drawn on in retirement and we ensure this capital is cared for with the highest fiduciary responsibility.
Physicians are facing much stress, especially in the current environment. Ensuring you and your family are looked after financially, will help mitigate this stress. In addition, we offer a Private Banking solution that allows you to have access to dedicated individuals who can take care of your day-to-day banking and lending needs. This is reserved specifically for high-net-worth individuals and physicians.
We work closely with legal and accounting professionals, as well as our in house specialists at BMO Private Wealth to help you incorporate your practice, to maximize your wealth and minimize taxes.
When you incorporate, you create a separate entity via a MPC or DPC, that owns your practice.
You personally, own shares of the corporation and pay yourself a salary, bonuses and dividends.
Your accountant or bookkeeper will then mange the revenue, expenses assets and debts which are all held separately from your own personal assets.
The number that is left at the end of your corporations year-end, after expenses, is essentially what is taxed.
The more capital you leave inside your medical practice, the less taxes owed. For context, corporate tax rates are significantly lower than personal assets. In Ontario, earnings retained inside your corporation are taxed at a combined rate of 12.2% approximately under $500,000, while personal income over $220,000 is taxed at 53.53%.